An Analysis of the Underground Economy and its Macroeconomic Consequences /

This paper develops a dynamic computable general equilibrium model in which optimizing agents evade taxes by operating in the underground economy. The cost to firms of evading taxes is that they find themselves subject to credit rationing from banks. Our model simulations show that in the absence of...

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Bibliographic Details
Main Author: Dabla-Norris, Era
Other Authors: Feltenstein, Andrew
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2003.
Series:IMF Working Papers; Working Paper ; No. 2003/023
Online Access:Full text available on IMF